Your home is one of your dearest and most treasured possessions. So, taking loans against your home is definitely to some extent putting your home at risk. But, at times, when you need money to fund major concerns, you may require hefty amounts at low rates of interest. In such cases, only a secured loan can get you what you need and that too with flexibility in repayment terms.

So, how do you ensure that any future event won't risk your house? You may decide to be regular with your monthly loan instalments, but can you guarantee what happens in the future? Definitely not! Future is unpredictable and so; one should not take any chances, especially when it comes to your home. So, why not take a payment protection scheme on your secured loan and protect your collateral.

All secured loan lenders provide the PPI that stands for Payment Protection Insurance. To define, PPI is the credit insurance that provides life insurance that pays a lump sum towards a loan upon the death, sickness, job loss, that makes the borrower incapable of paying the loan further. Thus, PPI helps the borrower in the following ways:

• Prevents defaults, arrears and missed payments

• Prevents bad credit score

• Prevents repossession of the home by the lender

• Prevents CCJs, IVAs and Bankruptcy

• Helps save you extra for the future

A secured loan is pledged against the borrower's home and so, he should always opt for a PPI scheme. So that in case his is unable to keep up with the payments in future, the insurer will pay the outstanding debt to the creditor. The instalments you pay regularly to the insurer will be returned to you after the maturity of the loan.

In case you decide to take the insurance cover from the same lender from whom you are availing your secured loan, there is a possibility that you may be able to get a refund back of your PPI at the end of the loan tenure in case its not been used.